70 Amendments of Bas EICKHOUT related to 2021/0191(COD)
Amendment 70 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) This Regulation aims to ensure that investors can more easily identify, compare and trust environmentally sustainable bonds, by providing them with a fully transparent and high-quality market of green bonds. It should therefore improve and not undermine current best practices in the green bond market. Current market practice is to not allocate the proceeds of green bonds to expenditures related to the use of fossil gas or nuclear power. It should therefore be specified that regardless of future developments of the technical screening criteria under Regulation (EU) 2020/852, the proceeds of European green bonds should not be allocated to the construction and operation of new nuclear power plants, to electricity generation from nuclear energy in existing installations, electricity generation from fossil gaseous fuels, co- generation of heat/cool and power from fossil gaseous fuels or to the production of heat/cool from fossil gaseous fuels.
Amendment 133 #
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. By way of derogation from paragraphs 1 and 2, issuers of ‘European green bond’ and ‘EuGB’ shall not allocate proceeds to any of the following: (a) construction and operation of new nuclear power plants, for the generation of electricity or heat, including for hydrogen production; (b) electricity generation from nuclear energy in existing installations; (c) electricity generation from fossil gaseous fuels; (d) cogeneration of heat/cool and power from fossil gaseous fuels; (e) production of heat/cool from fossil gaseous fuels
Amendment 215 #
Proposal for a regulation
Recital 1
Recital 1
(1) The transition to a low-carbonclimate neutral, more sustainable, energy and resource- efficient, circular and fair economy is key to ensuring the long-term competitiveness of the economy of the Union and the well- being of its peoples. In 2016, the Union concluded the Paris Agreement31 . Article 2(1), point (c), of the Paris Agreement sets out the objective of strengthening the response to climate change by, among other means, making finance flows consistent with a pathway towards low greenhouse gas emissions and climate- resilient development. __________________ 31Council Decision (EU) 2016/1841 of 5 October 2016 on the conclusion, on behalf of the European Union, of the Paris Agreement adopted under the United Nations Framework Convention on Climate Change (OJ L 282, 19.10.2016, p. 4).
Amendment 227 #
Proposal for a regulation
Recital 2
Recital 2
(2) In its resolution of 29 May 2018 on Sustainable finance, the European Parliament stressed the insufficient regulation of the green bond market and called for a legislative initiative to create a unified standard for the issuance of green bonds, building on the EU Taxonomy Regulation. The European Green Deal Investment Plan of 14 January 202032 envisages the establishment of a standard for environmentally sustainable bonds to further increase investment opportunities and facilitate the identification of environmentally sustainable investments through a clear label. In its December 2020 conclusions, the European Council invited the Commission to put forward a legislative proposal for a green bond standard33 . __________________ 32 COM(2020) 21 final. 33 EUCO 22/20.
Amendment 228 #
Proposal for a regulation
Recital 3
Recital 3
(3) Even though environmentally sustainable bonds are one of the main instruments for financing investments related to low- carbon technologies necessary for the decarbonisation of our society, energy and resource efficiency as well as sustainablezero- emission transport infrastructure and research infrastructure. Financial or non-financial undertakings or sovereigns can issue such bonds. Various existing initiatives for environmentally sustainable bonds do not ensure common definitions of environmentally sustainable economic activities. This p, the regulatory burden of directing private capital flows towards sustainable investments should not fall exclusively on such bonds, but on all debt instruments. Additional requirevments investors from easily identifying bonds the proceeds of which are aligned with, or are contributing to environmental objectives as laid down in the Paris Agreeare therefore needed to increase the environmental sustainability of all newly issued debt instruments.
Amendment 233 #
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3a) Financial or non-financial undertakings or sovereigns can issue environmentally sustainable bonds. Various existing initiatives for environmentally sustainable bonds do not ensure common definitions of environmentally sustainable economic activities. This prevents investors from easily comparing the environmental sustainability of bonds and from easily identifying bonds for which the proceeds are aligned with, or are contributing to environmental objectives as laid down in the EU Taxonomy Regulation and in the Paris Agreement.
Amendment 239 #
Proposal for a regulation
Recital 6
Recital 6
(6) The lack of harmonised rules for the procedures used by external reviewers to review environmentally sustainable bonds and the diverging definitions of environmentally sustainable activities make it increasingly difficult for investors to effectively compare bonds across the internal market with respect to their environmental objectives and environmental impact. The market for environmentally sustainable bonds is inherently international, with market participants trading bonds and making use of external review services from third party providers across borders. Action at Union level could reduce the risk of fragmentation of the internal market for environmentally sustainable bonds and bond-related external review services, and ensure the application of Regulation (EU) 2020/852 of the European Parliament and of the Council34 in the market for such bonds. __________________ 34 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).
Amendment 241 #
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6a) The convergence of the taxonomy developed by third countries and the EU taxonomy would foster the EU Green Bond Standard as a global standard. It’s therefore of paramount importance that the International Platform on Sustainable Finance act as a forum for dialogue between policy makers in view of providing common ground between the taxonomies that are being developed.
Amendment 242 #
Proposal for a regulation
Recital 7
Recital 7
(7) A uniform set of specific set of harmonised requirements should therefore be laid down for bonds issued by financial or non- financial undertakings or sovereigns that voluntarily wish to use the designationare marketed as environmentally sustainable, including those that are marketed as ‘European green bond’ or ‘EuGB’ for such bonds. Specifying quality requirements for European greenthose bonds in the form of a Regulation should ensure that there are uniform conditions for the issuance of such bonds by preventing diverging national requirements that could result from a transposition of a Directive, and should also ensure that those conditions are directly applicable to issuers of such bonds. Issuers that voluntarily use the designation ‘European green bond’ or ‘EuGB’ should follow the same rules across the Union, to increase market efficiency by reducing discrepancies and thereby also reducing the costs of assessing those bonds for investors. In order to achieve a Union green bond market that is consistent with the Union’s Taxonomy, the European green bond standard should progressively become the prime green bond standard within the Union. Therefore, it should become mandatory for newly issued green bonds within three years after entry into force of this Regulation. In order to enhance transparency, comparability and counter greenwashing during the period in which the European green bond standard remains voluntary, bonds marketed as environmentally sustainable issued in the Union without using the designation ‘European green bond’ or ‘EuGB’ should also disclose their alignment with the EU taxonomy, adhere to the “do no significant harm” principle set out in Article 17 of Regulation (EU) 2020/852 and ensure external review of pre- and post-issuance information
Amendment 255 #
Proposal for a regulation
Recital 8
Recital 8
(8) In accordance with Article 4 of Regulation (EU) 2020/852, and in order to provide investors with clear, quantitative, detailed and common definitions, the requirements set out in Article 3 of that Regulation should be used to determine whether an economic activity qualifies as environmentally sustainable. Proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’ should exclusively be used to fund new economic activities that either are environmentally sustainable and are thus aligned with the environmental objectivemeet the requirements set out in Article 93 of Regulation (EU) 2020/852 and are thus environmentally sustainable, or to contribute to the transformation of activities toso that they can meet those requirements and can thereby become environmentally sustainable. Those bonds can however be used both to finance such environmentally sustainable activities directly through the financing of assets and expenditures that relate to economic activities that meet the requirements set out in Article 3 of Regulation (EU) 2020/852, or indirectly through financial assets that finance economic activities that meet those requirements. It is therefore necessary to specify the categories of expenditures and assets that can be financed with the proceeds of bonds that use the designation ‘European green bond’ or ‘EuGB’.
Amendment 263 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9a) This Regulation aims to ensure investors can more easily identify, compare and trust environmentally sustainable bonds, by providing them with a fully transparent and high-quality market of green bonds. It should therefore improve and not undermine current best practices in the green bond market. Current market practice is to not allocate the proceeds of green bonds to expenditures related to the use of fossil gas or nuclear power. It should therefore be specified that regardless of future developments of the technical screening criteria under the Taxonomy Regulation, the proceeds of European green bonds should not be allocated to the construction and operation of new nuclear power plants, to electricity generation from nuclear energy in existing installations, electricity generation from fossil gaseous fuels, co- generation of heat/cool and power from fossil gaseous fuels or to the production of heat/cool from fossil gaseous fuel.
Amendment 277 #
Proposal for a regulation
Recital 11
Recital 11
(11) Article 4 of Regulation (EU) 2020/852 requires Member States and the Union to apply the criteria set out in Article 3 of that Regulation to determine whether an economic activity qualifies as environmentally sustainable for the purposes of any measure setting out requirements for financial market participants or issuers in respect of financial products or corporate bonds that are made available as environmentally sustainable. It is therefore logical that the technical screening criteria referred to in Article 3, point (d), of Regulation (EU) 2020/852 should determine which fixed assets, expenditures and financial assets can be financed by the proceeds of European green bonds. In view of the expected technological progress in the field of environmental sustainability, the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are likely to be reviewed and amended over time. Regardless of such changes, in order to provide legal certainty to issuers and investors and prevent amendments to the technical screening criteria from having a negative impact on the price of European green bonds that have already been issued, issuers should be able to apply the technical screening criteria applicable at the moment the European green bond was issued when allocating the proceeds of such bonds to eligible fixed assets or expenditures, until maturity of the bond. To ensure legal certainty for European green bonds whose proceeds are allocated to financial assets, it is necessary to clarify that the underlying economic activities funded by those financial assets should comply with the technical screening criteria applicable at the moment the financial assets were created. Where the relevant delegated acts are amended, the issuer should allocate proceeds by applying the amended delegated acts within five years.
Amendment 294 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) Investors should also be provided with all information necessary to evaluate the environmental impact of other bonds that are marketed as environmentally sustainable but that are not using the designation 'European green bonds'. To foster the comparability of those bonds across the market on the basis of environmental merits, those bonds issued on the internal market should disclose the degree to which they contribute to economic activities that qualify as environmentally sustainable pursuant to Article 3 of Regulation (EU) 2020/852. To avoid greenwashing, the issuers of such bonds should only allocate proceeds from those bonds to economic activities that respect the 'do no significant harm' principle pursuant to Article 17 of Regulation (EU) 2020/852 and be subject to pre-issuance factsheets, allocation reports and impact reports reviews by external reviewers.
Amendment 303 #
Proposal for a regulation
Recital 16
Recital 16
(16) Unlike issuers that are financial or non-financial undertakings, issuers that are sovereigns can use the proceeds of European green bonds to indirectly finance economic activities that are aligned with the taxonomy requirements through the use of programmes of tax expenditures or programmes of transfers, including subsidies. In such cases, sovereigns ensure that economic activities funded by such programmes comply with the terms and conditions of those programmes. For that reason, when providing pre- and post- issuance reviews of European green bonds issued by sovereigns and the proceeds of which are allocated to tax expenditures or subsidies in accordance with terms and conditions that are aligned with taxonomy requirements, external reviewers should not be required to assess the taxonomy- alignment of each economic activity funded by such programmes. Where that is the case, it should be sufficient for external reviewers to assess the alignment of the terms and conditions of the funding programmes concerned with the taxonomy requirements.
Amendment 305 #
Proposal for a regulation
Recital 18
Recital 18
(18) To improve transparency, issuers should also disclose the environmental impact of their bonds by means of the publication of impact reports, which should be published at least once during the lifetime ofevery five years until the bond matures and at least once after the bond matures. In order to provide investors with all information relevant to assess the environmental impact of European green bonds, impact reports should clearly specify the metrics, methodologies and assumptions applied in the assessment of the environmental impacts. To strengthen the comparability of European green bonds and to facilitate the localisation of relevant information, it is necessary to lay down templates for the disclosure of such information. The information contained in the impact reports should be subject to the assessment of external reviewers.
Amendment 311 #
Proposal for a regulation
Recital 20
Recital 20
(20) To ensure the efficiency of the market for European green bondsbonds marketed as environmentally sustainable, issuers should publish on their websites details about the European green bondsbonds marketed as environmentally sustainable they issue. To ensure the reliability of information and investor confidence, they shall also publish the pre-issuance review as well as any post-issuance reviews.
Amendment 314 #
Proposal for a regulation
Recital 24
Recital 24
(24) To ensure the independence of external reviewers, external reviewers should avoid situations of conflict of interest and manage those conflicts adequately when they are unavoidable. External reviewers should not be entitled to conduct an external review in case of conflict of interest that cannot be properly addressed. External reviewers should therefore disclose conflicts of interest in a timely manner. They should also keep records of all significant threats to their independence, to that of their employees and to that of other persons involved in the external review process. They should also keep records of the safeguards applied to mitigate those threats.
Amendment 328 #
Proposal for a regulation
Recital 37
Recital 37
(37) The objectives of this Regulation are twofold. On the one hand, it aims to ensure that uniform requirements apply to the use of the designation of ‘European green bond’ or ‘EuGB’bonds that are marketed as environmentally sustainable, including those that are using the designation of ‘European green bond’ or ‘EuGB’. These requirements improve the ability of investors to compare different environmentally sustainable bonds, including by comparing the alignment of the proceeds of such bonds with the technical screening criteria set out according to Article 19 of Regulation (EU)2020/852. It also ensures that no environmentally sustainable bond can finance economic activities that cause significant harm to the environment, irrelevant of the way they are designated. On the other hand, it aims to establish a simple registration system and supervisory framework for external reviewers by entrusting a single supervisory authority with the registration and supervision of external reviewers in the Union. Both aims should facilitate capital raising for projects that pursue environmentally sustainable objectives, ensure the integrity of environmental claims made by issuers of European green bonds, and increase the transparency on the environmental performance of other bonds that are marketed as environmentally sustainable. Since those objectives cannot be sufficiently achieved by the Member States but can be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives,
Amendment 335 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation lays down uniform requirements for issuers of bonds marketed as environmentally sustainable and issuers that wish to use the designation ‘European green bond’ or ‘EuGB’ for their environmentally sustainable bonds made available to investors in the Union, and establishes a registration system and supervisory framework for external reviewers of European green bonds and other bonds marketed as environmentally sustainable.
Amendment 341 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)
Article 2 – paragraph 1 – point 5 a (new)
(5a) ‘bond marketed as environmentally sustainable’ means a bond whose issuer provides investors with commitments or any form of pre- contractual claims that the bond proceeds are allocated to economic activities that contribute to an environmental objective.
Amendment 343 #
Proposal for a regulation
Title II – title
Title II – title
Conditions for the use of the designation ‘European green bond’ or ‘EuGB’ and for marketing other bonds as ‘environmentally sustainable’
Amendment 344 #
Proposal for a regulation
Article 3 – title
Article 3 – title
Designation of "European green bond" or "EuGB"
Amendment 345 #
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
The designation ‘European green bond’ or ‘EuGB’ shall only be used for bonds that comply with the requirements set out in this TitleRegulation until their maturity.
Amendment 349 #
Proposal for a regulation
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
Amendment 353 #
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
3. By way of derogation from paragraph 2, the proceeds of the financial assets referred to in paragraph 1 may be allocated to other financial assets provided that the proceeds from those financial assets are allocated according to paragraph 2 and that such allocation does not hamper the ability of external reviewers to effectively review the final allocation of proceeds.
Amendment 357 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
The use of proceeds referred to in Article 4 shall relbe allocated to new economic activities that meet the taxonomy requirements, or thato the transformation of existing economic activities so that they will meet the taxonomy requirements within a defined period of time as set out in a taxonomy-alignment plan. Transitional economic activities within the meaning of Article 10(2) of Regulation 2020/852 and activities referred to under Article 7(2a) of this Regulation shall not be part of the taxonomy-alignment plan.
Amendment 363 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 2
Article 6 – paragraph 1 – subparagraph 2
The taxonomy-alignment plan referred to in the first subparagraph shall describe the detailed actions and expenditures, including the annual intermediate steps referred to in paragraph 2a, that are necessary for the transformation of an economic activity in order to meet the taxonomy requirements within the specified period of time.
Amendment 369 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 3
Article 6 – paragraph 1 – subparagraph 3
The period referred to in the first and second subparagraph shall not exceed five years from bond issuance, unless a longer period of up to ten years is duly justified by the specific features of the economic activities concerned as documented in a taxonomy- alignment plan.
Amendment 376 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2a. The taxonomy-alignment plan referred to in paragraph 1 shall describe the annual intermediate steps to be achieved in order for an economic activity to meet the taxonomy requirements as specified in that paragraph. The achievement of those steps shall be verified by an external reviewer. Where intermediate steps are not achieved on two consecutive occasions, the issuer shall no longer be allowed to use the designation of European green bond for the bond issuance concerned by that taxonomy- alignment plan.
Amendment 377 #
Proposal for a regulation
Article 6 – paragraph 2 b (new)
Article 6 – paragraph 2 b (new)
2b. ESMA shall develop draft regulatory technical standards specifying the content and form of taxonomy- alignment plans and qualifying the circumstances in which a longer period of up to 10 years in order to meet the taxonomy requirements is duly justified by the specific features of the economic activities concerned. ESMA shall submit those draft regulatory technical standards to the Commission by [12 months after the date of entry into force of this Regulation]. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph no later than [18 months after the date of entry into force of this Regulation] in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 380 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1
Article 7 – paragraph 1 – subparagraph 1
Issuers shall allocate bond proceeds to the uses set out in Article 4(1) points (a), (b) and (c), Article 4(2), or the equity referred to in Article 5(1), point (b) by applying paragraph 2a of this Article and the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 applicable at the point in time when the bond was issued.
Amendment 386 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 2
Article 7 – paragraph 1 – subparagraph 2
Where the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended following the issuance of the bond, the issuer shall allocate bond proceeds to the uses referred to in the first subparagraph by applying the amended delegated acts within five years after their entry into application. In cases where, five years after the entry into application of the amended delegated acts, bond proceeds are not fully allocated in accordance with those delegated acts, the bond shall not retain its designation as a European green bond.
Amendment 394 #
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 3
Article 7 – paragraph 2 – subparagraph 3
Where the delegated acts adopted pursuant to Articles 10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of Regulation (EU) 2020/852 are amended following the creation of the debt referred to in the first subparagraph, the issuer shall allocate bond proceeds to the debt referred to in the first subparagraph by applying the amended delegated acts within five years after their entry into application. In cases where, five years after the entry into application of the amended delegated acts, bond proceeds are not fully allocated in accordance with those delegated acts, the bond shall not retain its designation as a European green bond.
Amendment 396 #
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. Issuers shall not allocate proceeds to economic activities relating to: (a) construction and operation of new nuclear power plants for the generation of electricity or heat, including for hydrogen production; (b) electricity generation from nuclear energy in existing installations; (c) electricity generation from fossil gaseous fuels unless the life-cycle GHG emissions are lower than 100gCO2e/kWh; (d) co-generation of heat/cool and power from fossil gaseous fuels unless the life-cycle GHG emissions are lower than 100gCO2e/kWh; (e) production of heat/cool from fossil gaseous fuels in a district heating and cooling system unless the life-cycle GHG emissions are lower than 100gCO2e/kWh.
Amendment 400 #
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Amendment 407 #
Proposal for a regulation
Article 7 b (new)
Article 7 b (new)
Article 7b Use of proceeds of ‘bonds marketed as environmentally sustainable’ 1. Without prejudice to Article 7c, issuers of ‘bonds marketed as environmentally sustainable’ that do not use the designation ‘European green bonds’ or ‘EuGB’ shall disclose in the pre-issuance factsheets, allocation reports and impact reports of those bonds the proportion of the bond proceeds that is allocated to economic activities that meet the taxonomy requirements. 2. Issuers of ‘bonds marketed as environmentally sustainable’ that do not use the designation ‘European green bonds’ or ‘EuGB’ shall only allocate the proceeds of those bonds to economic activities that do not significantly harm any of the environmental objectives set out in Article 9 of Regulation (EU) 2020/852 in accordance with Article 17 and the delegated acts adopted pursuant to Articles10(3), 11(3), 12(2), 13(2), 14(2) or 15(2) of that Regulation. The pre- issuance factsheets and allocation reports of the bonds referred to in the first paragraph shall be accompanied by the following statement: ‘The use of proceeds relates to economic activities that cause no significant harm to any of the environmental objectives set out in Article 9 of Regulation (EU) 2020/852 pursuant to Article 17 of that Regulation.’ 3. ‘Bonds marketed as environmentally sustainable’ shall be subject to reviews of pre-issuance factsheets, allocation reports and impact reports by external reviewers that are registered in accordance with Articles 14 to 17, meet the requirements of Titles II and III and are subject to supervision pursuant to Title IV under Chapter III of this Regulation.
Amendment 409 #
Proposal for a regulation
Article 7 c (new)
Article 7 c (new)
Article 7c Mandatory use of the designation of ‘European green bond’ or ‘EuGB’ 1. As of ... [three years after the date of entry into force of this Regulation], and notwithstanding Article 7b, all issuers of bonds marketed as environmentally sustainable shall use the designation ‘European green bond’ and comply with all the requirements set out in this Regulation until their maturity. 2. Paragraph 1 shall not apply to bonds marketed as environmentally sustainable issued prior to ...[three years after the date of entry into force of this Regulation].
Amendment 411 #
Proposal for a regulation
Article 7 d (new)
Article 7 d (new)
Article 7d Use of the European green bond standard by Union institutions and bodies Union institutions and bodies shall use the European green bond standard and apply the criteria of Articles 4 to 7a to any bond issuance for which the use of proceeds has environmental sustainability as its objective.
Amendment 426 #
Proposal for a regulation
Article 9 – paragraph 8
Article 9 – paragraph 8
8. Where bond proceeds are allocated to tax relief as referred to in Article 4(2), point (c) or subsidies as referred to in Article 4(2), point (d), the post-issuance review shall only assess compliance with Articles 4 to 7 of the terms and conditions under which those expenditures or transfers have been disbursed.
Amendment 430 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Issuers of European green bonds shall, after the full allocation of the proceeds of such bonds and at least once during the lifetime of the bondevery five years until the bond reaches maturity, draw up a European green bond impact report on the environmental impact of the use of the bond proceeds by using the template laid down in Annex III.
Amendment 441 #
Proposal for a regulation
Title III – title
Title III – title
External reviewers for European Green Bonds and bonds marketed as environmentally sustainable
Amendment 442 #
Proposal for a regulation
Title III – Chapter I – title
Title III – Chapter I – title
Conditions for taking up activities as external reviewer for European green bonds and bonds marketed as environmentally sustainable
Amendment 443 #
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. External reviewers for European green bonds or bonds marketed as environmentally sustainable shall, before taking up their activities, register with ESMA.
Amendment 447 #
Proposal for a regulation
Article 15 – title
Article 15 – title
Application for registration as an external reviewer for European Green Bonds and bonds marketed as environmentally sustainable
Amendment 448 #
Proposal for a regulation
Article 15 – paragraph 1 – introductory part
Article 15 – paragraph 1 – introductory part
1. An application for registration as an external reviewer for European green bonds and bonds marketed as environmentally sustainable shall contain all of the following information:
Amendment 450 #
Proposal for a regulation
Article 15 – paragraph 1 – point d a (new)
Article 15 – paragraph 1 – point d a (new)
(da) the business plans and governance structures of the applicant;
Amendment 454 #
Proposal for a regulation
Article 15 – paragraph 2 – point a – point i a (new)
Article 15 – paragraph 2 – point a – point i a (new)
(ia) has not been convicted of any fraud offence in the past five years;
Amendment 459 #
Proposal for a regulation
Article 15 – paragraph 4 – subparagraph 2
Article 15 – paragraph 4 – subparagraph 2
ESMA may extend the period referred to in the first subparagraph by 15 working days where the applicant intends to use outsourcing to perform some of its activities as an external reviewer.
Amendment 464 #
Proposal for a regulation
Article 19 – paragraph 2 – subparagraph 1
Article 19 – paragraph 2 – subparagraph 1
ESMA shall develop draft regulatory technical standards specifying the criteria to assess the sound and prudent management of the external reviewer referred to in paragraph 1, point (a) and (c).
Amendment 466 #
Proposal for a regulation
Article 25 – paragraph 1
Article 25 – paragraph 1
1. External reviewers that outsource part of their assessment activities to third party service providers shall ensure that any such third party service provider has the ability and the capacity to perform those assessment activities reliably and professionally. Those external reviewers shall also ensure that the outsourcing does not materially impair the quality of their internal control and the ability of ESMA to supervise the compliance of those external reviewers with this Regulation.
Amendment 468 #
Proposal for a regulation
Article 25 – paragraph 2
Article 25 – paragraph 2
2. External reviewers shall not outsourceduly motivate a decision to outsource a part of their assessment activities. External reviewers shall not outsource all of their assessment activities or their compliance function.
Amendment 470 #
Proposal for a regulation
Article 25 – paragraph 3
Article 25 – paragraph 3
3. External reviewers shall notify ESMA about those of its assessment activities which are to be outsourced, including a specification of the level of human and technical resources needed to carry out each of those activities. ESMA shall, within 30 days of the date of receipt of that notification, approve or reject the outsourcing arrangements. ESMA shall reject the outsourcing arrangements if it considers that the external reviewer does not comply with paragraphs 1, 2 and 4.
Amendment 472 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. Fees charged by external reviewers for assessment services shall be agreed by the reviewer and the issuer prior to the review and shall not depend on the result of the pre-issuance or post- issuance review, or on any other result or outcome of the work performed.
Amendment 474 #
Proposal for a regulation
Article 27 – paragraph 4 a (new)
Article 27 – paragraph 4 a (new)
4a. An external reviewer shall not issue a review in any of the following circumstances: (a) the external reviewer, or a person referred to in paragraph 1, directly or indirectly owns financial instruments of the reviewed entity or a related third party or has any other direct or indirect ownership interest in that entity or party, other than holdings in diversified collective investment schemes, including managed funds such as pension funds or life insurance; (b) a shareholder or member of the external reviewer holding 10 % or more of either the capital or the voting rights of that reviewer or being otherwise in a position to exercise significant influence on the business activities of the reviewer, holds 10 % or more of either the capital or the voting rights of the reviewed entity or of a related third party, or of any other ownership interest in that reviewed entity or third party, excluding holdings in diversified collective investment schemes and managed funds such as pension funds or life insurance that do not put that shareholder or member of the external reviewer in a position to exercise significant influence on the business activities of the scheme; (c) the external review is issued with respect to a reviewed entity or a related third party directly or indirectly linked to the external reviewer by control; (d) the external review is issued with respect to a reviewed entity or a related third party which holds 10 % or more of either the capital or the voting rights of the external reviewer; (e) a person referred to in paragraph 1 is a member of the administrative or supervisory board of the reviewed entity or a related third party; (f) a shareholder or member of an external reviewer holding 10 % or more of either the capital or the voting rights of that external reviewer or being otherwise in a position to exercise significant influence on the business activities of the external reviewer, is a member of the administrative or supervisory board of the reviewed entity or a related third party; or (g) a rating analyst who participated in determining a review outcome, or a person who approved a review, has had a relationship with the reviewed entity or a related third party which might cause a conflict of interests. An external reviewer shall immediately disclose where any of the circumstances set out in the first subparagraph apply to an existing review.
Amendment 475 #
Proposal for a regulation
Article 27 – paragraph 4 b (new)
Article 27 – paragraph 4 b (new)
4b. ESMA shall develop draft regulatory technical standards to specify the requirements referred to in paragraph 4a and any further targeted requirements to avoid conflicts of interest of external reviewers. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 479 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. A third-country external reviewer may provide its services in accordance with this Regulation to issuers that issue European green bonds or bonds marketed as environmentally sustainable where that third- country external reviewer is registered in the register of third-country external reviewers kept by ESMA in accordance with Article 59.
Amendment 485 #
Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 1 – point e
Article 37 – paragraph 1 – subparagraph 1 – point e
(e) to suspend an offer of European green bonds for a maximum of 10 consecutivbonds marketed as environmentally sustainable wforking days as long as necessary on any single occasion where there are reasonable grounds for suspecting that Articles 86 to 13 of this Regulation have been infringed;
Amendment 486 #
Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 1 – point f
Article 37 – paragraph 1 – subparagraph 1 – point f
(f) to prohibit or suspend advertisements or require issuers of European green bonds or bonds marketed as environmentally sustainable or financial intermediaries concerned to cease or suspend advertisements for a maximum of 10 consecutive working daysas long as necessary on any single occasion where there are reasonable grounds for believing that Articles 86 to 13 of this Regulation have been infringed;
Amendment 487 #
Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 1 – point f a (new)
Article 37 – paragraph 1 – subparagraph 1 – point f a (new)
(fa) to prohibit an offer of European green bonds or bonds marketed as environmentally sustainable, on any single occasion where Articles 6 to 13 of this Regulation have been infringed;
Amendment 488 #
Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 1 – point f b (new)
Article 37 – paragraph 1 – subparagraph 1 – point f b (new)
(fb) to prohibit an issuer to issue European Green bonds for a period of maximum ten years, where external reviewers found that the proceeds of one or several European Green bonds issued by this issuers were not allocated in line with the provisions set by this Regulation;
Amendment 489 #
Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 1 – point g
Article 37 – paragraph 1 – subparagraph 1 – point g
(g) to make public the fact that an issuer of European green bonds or bonds marketed as environmentally sustainable is failing to comply with its obligations under Articles 86 to 13 of this Regulation;
Amendment 492 #
Proposal for a regulation
Article 44 – paragraph 2 – subparagraph 1 – point c – point ii
Article 44 – paragraph 2 – subparagraph 1 – point c – point ii
Amendment 495 #
Proposal for a regulation
Article 63 a (new)
Article 63 a (new)
Amendment 497 #
Proposal for a regulation
Article 63 a (new)
Article 63 a (new)
Regulation (EU) 2020/852
Article 7 a (new)
Article 7 a (new)
Article 63a Amendment to Regulation (EU) 2020/852 The following article is inserted in Regulation (EU) 2020/852: ‘Article 7a Transparency of bonds and other forms of securitised debt Bonds and other forms of securitised debt (‘debt securities’) shall incorporate in pre- contractual disclosures and periodic reports, including in the prospectus where a prospectus is to be published pursuant to Regulation (EU) 2017/1129, a description of how and to what extent the proceeds of the bond or the debt security are allocated to economic activities that qualify as environmentally sustainable under Article 3 of this Regulation.’
Amendment 498 #
Proposal for a regulation
Article 63 a (new)
Article 63 a (new)
Article 63a Amendment to Regulation (EU) 2020/852 Article 8 of Regulation (EU) 2020/852 is amended as follows: (1) the following paragraph is inserted: ‘3a. As from … [one year after the date of entry into force of Regulation XXX], financial undertakings shall disclose information pursuant to paragraph 1 of this Article by including exposures to central governments, central banks and supranational issuers.’; (2) paragraph 4 is replaced by the following: ‘4. The Commission shall adopt a delegated act in accordance with Article 23 to supplement paragraphs 1 and 2 of this Article to specify the content and presentation of the information to be disclosed pursuant to those paragraphs, including the methodology to be used in order to comply with them, taking into account the specificities of both financial and non-financial undertakings and the technical screening criteria established pursuant to this Regulation. The Commission shall adopt that delegated act by 1 June 2021. The Commission shall update that delegated act in accordance with paragraph 3a no later than ... [one year after the date of entry into force of this Regulation].’.
Amendment 502 #
Proposal for a regulation
Annex I – point 3
Annex I – point 3
3.Environmental strategy and rationale [Information on how the bond aligns with the broader environmental strategy of the issuer Sustainability strategy and rationale - [Information on entity-level taxonomy alignment of the issuer, by applying the delegated acts as adopted pursuant to Article 8 of Regulation (EU) 2020/852] -[Information on the broader environmental strategy of the issuer, which shall include 5-year targets to reduce the environmental impact of the issuer in view of aligning the issuer’s business model with the environmental objectives set out in Article 9 of Regulation (EU) 2020/852. The strategy shall in particular: -(a) include 5-year targets to reduce scope 1, 2 and 3 GHG emissions of the issuer in view of ensuring the alignment of the issuer’s business model with the objective of limiting global warming to 1.5°C above pre-industrial levels; -(b) exclude the use of carbon offset credits as a way to meet its GHG emissions reduction targets; -(c) uphold the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852; -(d) be reviewed by independent scientific reviewers, and made available to the general public.] -[Information on how and to what extent the bond aligns with the broader environmental strategy of the issuer, and on how and to what extent the issuance of the EU green bond is intended to increase the proportion of its capital expenditure and operating expenditure related to, and of its turnover derived from, economic activities that qualify as environmentally sustainable pursuant to Regulation (EU) 2020/852] -[The environmental objectives referred to in Article 9 of Regulation 2020/852 pursued by the bond] -Information on the overarching sustainability strategy of the issuer, including: -(a) its efforts to promote social sustainability objectives and good governance principles as referred to in Article 2(17) of Regulation (EU) 2019/2088 -(b) applicable due diligence policies with respect to principal adverse impacts of investment decisions on sustainability factors, taking due account of the size, the nature and scale of the issuer’s activities and compliance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights; -(c) an indication of any activity of the issuer in jurisdictions listed in Annex I and Annex II to the EU list of non- cooperative jurisdictions for tax havens and their real economic presence in these jurisdictions in terms of assets, full time employees, sales and taxes paid in these jurisdictions
Amendment 505 #
Proposal for a regulation
Annex I – point 4.3 – indent 4 a (new)
Annex I – point 4.3 – indent 4 a (new)
– For projects that are concerned by a Taxonomy-alignment plan: The annual intermediate steps, including all actions and expenditures, that are necessary for the transformation of that economic activity in order to meet the taxonomy requirements within the specified period of time
Amendment 507 #
Proposal for a regulation
Annex II – point 3 – paragraph 2 – indent 7
Annex II – point 3 – paragraph 2 – indent 7
– For assets that are concerned by a taxonomy alignment plan: the progress in the implementation of the plan during the reporting period, and thes well the remaining steps and estimated date of their completion;
Amendment 508 #
Proposal for a regulation
Annex III – point 2
Annex III – point 2
2. EnvironmentalSustainability strategy and rationale - [Information on how the bond aligns with the broader environmental strategy of the issuer as set out in the factsheet] [Where applicable, an explanation of any changes to broader environmental strategy of the issuer since the publication of the factsheetentity-level taxonomy alignment of the issuer, by applying the delegated acts as adopted pursuant to Article 8 of Regulation (EU) 2020/852] -[Information on the broader environmental strategy of the issuer, which shall include 5-year targets to reduce the environmental impact of the issuer in view of aligning the issuer’s business model with the environmental objectives set out in Article 9 of Regulation (EU) 2020/852. The strategy shall in particular: -(a) include 5-year targets to reduce scope 1, 2 and 3 GHG emissions of the issuer in view of ensuring the alignment of the issuer’s business model with the objective of limiting global warming to 1.5°C above pre-industrial levels; -(b) exclude the use of carbon offset credits as a way to meet its GHG emissions reduction targets; -(c) uphold the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852; -(d) be reviewed by independent scientific reviewers, and made available to the general public.] -[Information on how and to what extent the bond aligns with the broader environmental strategy of the issuer, and on how and to what extent the issuance of the EU green bond is intended to increase the proportion of its capital expenditure and operating expenditure related to, and of its turnover derived from, economic activities that qualify as environmentally sustainable pursuant to Regulation (EU) 2020/852] -[The environmental objectives referred to in Article 9 of Regulation 2020/852 pursued by the bond] -Information on the overarching sustainability strategy of the issuer, including: -(a) its efforts to promote social sustainability objectives and good governance principles as referred to in Article 2(17) of Regulation (EU) 2019/2088 -(b) applicable due diligence policies with respect to principal adverse impacts of investment decisions on sustainability factors, taking due account of the size, the nature and scale of the issuer’s activities and compliance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of Human Rights; -(c) an indication of any activity of the issuer in jurisdictions listed in Annex I and Annex II to the EU list of non- cooperative jurisdictions for tax havens and their real economic presence in these jurisdictions in terms of assets, full time employees, sales and taxes paid in these jurisdictions.
Amendment 509 #
Proposal for a regulation
Annex III – point 3 – paragraph 1 – indent 3 (new)
Annex III – point 3 – paragraph 1 – indent 3 (new)
– For assets that are concerned by a Taxonomy-alignment plan: confirmation of compliance with the requirements of Regulation XX after completion.